VTB May Consider Mozambique Investment Opportunities

By Colin McClelland -
Aug 23, 2013

VTB Group, Russia’s second-largest
bank, said it may consider investment banking opportunities in
Mozambique even after rebel clashes with government troops.

Forces tied to the opposition Mozambique National
Resistance party, known as Renamo, have rekindled tensions that
caused a 15-year civil war against the ruling Frelimo party
until 1992. Renamo said it killed 36 soldiers in a clash earlier
this month, while the government said only two people died.
Rebels attacked arms depots and buses, killing several people
earlier this year, forcing the closure of rail lines used by
coal mines owned by Rio Tinto Plc. (RIO)

“Mozambique is one of the countries that VTB may look at
in the future in terms of investment banking as part of its sub-Saharan medium-term strategy,” Igor Skvortsov, chairman of
VTB’s African unit, said in an e-mail yesterday. “We have noted
additional political tension that may have an impact on seeing
more investors coming to Mozambique in the future.”

VTB, which bases its African operation in Angola, was
considering a transaction with the Mozambican government tied to
infrastructure development, Amilcar Barros, a director at VTB’s
African unit, said in an interview on Aug. 21, without giving
more detail. The country is the site of the world’s largest
discovery of natural gas in the past decade

The bank’s comments on the clashes in Mozambique are “not
specific to any transaction, that is, or will be, negotiated,”
Skvortsov said.

“VTB appreciates all efforts being done by the government
of Mozambique in creating a healthy economic environment and in
mitigating the political risks,” Skvortsov said.